Investment mobilsed

For every $1 of PIDG member contributions $23 is expected to be mobilised, $17 of which is from private sector financing

The more private sector funding PIDG can mobilise, the further its own funding will go and the greater the impact it will have. PIDG companies leverage funding from its members at the project level, blending it with private sector investment from local, regional and international sources, and debt or equity from development finance institutions (DFIs).

The figures in the table below are a key indicator of the extent to which PIDG has succeeded in catalysing private sector and development finance investment in infrastructure. PIDG’s focus on challenging markets is indicated by the percentage of total investment mobilised in lower and middle income countries and fragile and conflict-affected states (FCAS). At the end of 2016, for every $1 of PIDG member contributions, $17 of private local and foreign commercial financing (excluding DFI investments) is expected to be mobilised.

At the PIDG company level equity injected by PIDG members enables EAIF and GuarantCo to raise additional financing from the private sector and DFIs. The increased funding means PIDG companies can support both a higher number of projects and those that are larger in scale.

At the project level PIDG encourages co-financing or follow-on financing from external sources. By taking on the up-front risk, its companies reduce risk to a sufficient level for the private sector to invest, typically at financial close or shortly afterwards.

Due to the limited availability of private sector financing to close infrastructure deals in developing countries, PIDG projects are often co-financed by other DFIs. PIDG is working with them to refine the methodology for allocation of investment mobilised.

"London Stock Exchange’s partnership with GuarantCo will build on our existing emerging markets expertise and will help companies in those markets access new sources of private sector finance for much-needed infrastructure projects."